Forecasted prepaids can be entered into the system for tracking

Description

The ability to enter and track forecasted prepaids in Corporate Performance Management (CPM) systems enables businesses to efficiently manage and plan for prepaid expenses. Prepaid expenses represent the payments that a company has made in advance for goods and services it will receive in the future. This functionality allows for accurate forecasting, budgeting, and financial planning within an organization.

Example Use Case

Scenario: A mid-market corporation uses Google Sheets to forecast their prepaid expenses. Because of the simplicity of Google Sheets, they're forced to use one type of amortization and are unable to provide a detailed monthly forecast.

Solution: The company acquires a CPM system that allows them to enter in projected prepaids on a list with the expected purchase date, asset type, and full amount. The system then incorporates these prepaids at a detailed level into future financial forecasts and budgets, providing a more precise view of expected income and expenses.

Considerations

This simple requirement specifies that the CPM tool should allow users to access a sheet for Prepaids and enter line items. These line items should contain dates, amounts, asset type, notes, and so on. Bonus points if the system allows an approved or denied flag which would effect how the data flows through the system.

Questions to Ask a Vendor

• Prepaid Forecast: Can we add individual prepaids to the forecast? What level of detail is offered?
• Updating: When a prepaid is purchased, how to we reflect that in the system?